IDB proposal for US$200 million funding for ATOME
For immediate release
21 November 2024
ATOME PLC
("ATOME" or the "Company")
IDB proposal for US$200 million funding for ATOME
ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, announces that IDB Invest, the private investment arm of the Inter-American Development Bank ("IDB"), has published an updated consultation on its proposed US$200 million participation subject to contract in the debt funding for ATOME's Villeta Project ("Villeta" or "the Project") in Paraguay, including confirmation of the satisfactory completion of environmental and social impact studies.
IDB proposed debt funding
ATOME is pleased to announce that the IDB has published on its website, in the normal course of procedures as part of their investment summary and environment and social impact reporting, that it is proposing an increased US$200 million of debt funding to the Company for ATOME's planned 260,000 tonne-per-annum green fertiliser Villeta Project in Paraguay.
ATOME welcomes this upgrading which reflects the commercial attractiveness and importance of the project both to the IDB and Paraguay. As previously announced, the Company has received similar debt proposals from multilaterals and institutions, such that the debt portion of the project funding is not only substantially oversubscribed on the basis of these proposals but taken as a whole reflects interest levels noticeably better than both the Company's and market's expectations.
In relation to the construction, operating and energy costs of the Villeta Project, also previously made available through a link within the IDB website, ATOME confirms that these are broadly in line with current market expectations as reflected in previous announcements by ATOME and published research by SP Angel, the Company's house broker.
Analyst Research
The full list of analyst research on ATOME can be found on the Company's website at https://www.atomeplc.com/investors/analyst-research/
Project update
Casale S.A., ATOME's nominated EPC contractor, is currently in-country having positive and constructive meetings with local Paraguayan contract and service providers as a further step in moving forward the EPC process.
The satisfactory completion by the IDB of its environmental and social appraisal due diligence for the Villeta Project marks the achievement of a key gating item for any development bank funding.
Further information from the IDB website on the Villeta project, including details of IDB's environmental impact and social impact studies, is available at the weblink below:
https://www.idbinvest.org/en/projects/green-hydrogen-ammonia-and-fertilizer-plant-paraguay
IDB
IDB, one of the largest sources of finance for Latin America, is owned by 48 member countries including the UK and finances its diverse operations through issuing bonds in international markets where since 1962 its credit rating is AAA. IDB Invest is the private investment arm of the IDB.
For more information, please visit https://www.atomeplc.com or contact:
|
ATOME PLC
|
+44 (0) 113 337 2210 |
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Beaumont Cornish (Nominated Adviser) |
+44 (0) 20 7628 3396 |
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SP Angel (Broker) |
+44 (0) 20 3490 0470 |
|
FTI Consulting (Communications Adviser) Elizabeth Adams, Ben Brewerton |
+44 (0) 20 3727 1000 |
MAR
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.
About ATOME
ATOME PLC is an AIM listed company targeting green fertiliser production with 445-megawatt of projects in Paraguay and a further pipeline of potential projects in Central America.
The first project is at Villeta in Paraguay. It benefits from a 145MW renewable power purchase agreement and 30 hectares of land in a tax free zone. Front End Engineering Design studies have been completed and Heads of Terms signed with Yara, the leading international fertiliser company for offtake of all of Villeta's production. The Company is now negotiating the project finance with a view to closing that and declaring FID before end 2024. There is a further 300MW of renewable power reserved for ATOME in Paraguay.
In Costa Rica, The National Ammonia Corporation S.A. was formed in 2022 with local partner Cavendish S.A. based in Costa Rica to develop green fertiliser projects for the region. As well as straddling the Pacific and Atlantic Oceans, Costa Rica is a democratic Central American country. In agriculture, Costa Rica is the second largest supplier of pineapples in the world and is in the top ten banana growers.
All power for ATOME is from 100% renewable sources and all chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Schroders, a leading fund manager, and Baker Hughes, a global technology company operating in the energy and industry sectors.
Other information
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
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